Summary of Consolidated Financial Results
for the Second Quarter of Fiscal Year Ended February 29, 2024
[Japanese GAAP] (Consolidated)
October 13, 2023
Company name:

TSI HOLDINGS CO., LTD.

Stock listing: Tokyo Stock Exchange

Code number:

3608

URL: https://www.tsi-holdings.com/en/

Representative:

Representative Director and President, Tsuyoshi Shimoji
Executive Officer, General Manager of Finance & Accounting Dept. Mitsuru Naito
TEL: +81-3-5785-6400

Contact:

Scheduled date of financial report:
Scheduled date to begin dividend payment:

October 16, 2023―

Preparation of supplementary financial document:
Briefing session to explain the financial statements:

Yes
Yes (For institutional investors and analysts)(Rounded down to the nearest million yen)

1. Consolidated Business Results for the Second quarter of the Fiscal Year Ended February 29, 2024(March 1, 2023 to August 31,
2023)(1) Consolidated results of operations(% change from the previous fiscal year)

Net sales

Second quarter of FY ended
February 29,2024
Second quarter of FY ended
February 28,2023

Operating income

Million yen%

73,278

1.7

72,087

11.3

Million yen

Profit attributable toowners of parent

Ordinary income%

Million yen%

Million yen

532

(9.6)

1,608

(15.0)

1,472(34.6)

588(48.1)

1,892

(5.5)

2,249

19.0

(Notes) Comprehensive income: Second quarter of Fiscal year ended February 29, 2024 ¥2,760 million(22.8%)
Second quarter of Fiscal year ended February 28, 2023 ¥3,578 million 110.7%
Net income
per share
Second quarter of FY ended
February 29,2024
Second quarter of FY ended
February 28,2023

Diluted net
income per share
Yen

Yen

17.72

―

25.41

―

(2) Consolidated financial position

Million yen

Million yen

Shareholders’ equity
ratio%

132,679

99,28074.5

135,427

98,878

Total assets
Second quarter of FY ended
February 29,2024
FY ended February 28,2023

Net assets

72.7(Reference) Shareholders’ equity: Second quarter of FY ended February 29,2024
FY ended February 2023

¥98,900 million¥98,480 million

2. Dividends
Annual dividend
End of
1Q
Yen

End of
2Q
Yen

End of
3Q
Yen

Yen

Yen

FY ended February 2023

―

0.00

―

10.00

10.00

FY ended February 2024

―

0.00
―

15.00

15.00

FY ended February 2024
(forecast)Year-end(Note) Revisions during this quarter of dividends forecast for fiscal year: None

Total

%

3. Forecast of Consolidated Business Results for the Fiscal Year Ending February 29, 2024 (March 1, 2023 to February 29, 2024)(% change from the corresponding period of the previous fiscal year)
Net sales
Million yen
Full fiscal year

162,000

Operating income%

Million yen
4.9

4,700

%

Ordinary income
Million yen

101.8

%

5,500

Profit attributable toowners of parent
Million yen

42.5

3,500

Net income
per share

%

Yen

14.3

41.54

(Note) Revisions during this quarter of previously disclosed consolidated business results projection for FY 2024: None

＊Notes:(1) Changes in significant subsidiaries during the period: None
Changes in specified subsidiaries resulting in a change in the scope of consolidation(2) Application of particular accounts procedures to the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and restatements
a. Changes in accounting policies due to revisions of accounting standards: Yes
b. Changes in accounting policies other than above (a): Nonec. Changes of accounting estimates: Yes
d. Restatements: None

(Note) For details, please refer to "2. Consolidated Financial Statements and Major Notes, and (4) Notes to Consolidated Financial
Statements (changes in accounting policies)” on page 10 of attached materials.
(4) Number of shares issued (common stock)a. Number of shares issued
Q2 of FY ended February
at the end of period(treasury stock included) 2024
b. Number of treasury
Q2 of FY ended February
stock at the end of period 2024
c. Average number ofshares over the period

Q2 of FY ended February
2024

90,144,093 shares

FY ended February 2023

90,144,093 shares

8,068,438 shares

FY ended February 2023

5,878,463 shares

83,095,380 shares

Q2 of FY ended February
2023

88,545,700 shares*This business results report is not subject to auditing by certified public accountants or audit firms.
*Explanation regarding the appropriate use of business forecasts and other special instructions
The forward-looking statements, including business forecasts, contained in this document are based on information currently
available to the Company and on certain assumptions deemed reasonable by the Company, and are not intended as a promise by
the Company that they will be achieved. Actual results may differ materially due to a variety of factors. Please refer to "(3)Explanation of Consolidated Business Forecast and Other Forward-looking Statements " on page 3 for the assumptions underlying
the forecasts and cautionary statements regarding the use of the forecasts.

Contents of Attached Materials
1. Qualitative Information on results for this quarter of FY ended February 2024 ····································· 2(1) Overview of Business Results ······························································································· 2(2) Overview of Financial Position ···························································································· 3(3) Explanation of Consolidated Business Forecast and Other Forward-looking Statements ··············· 3
2. Quarterly Consolidated Financial Statements and Major Notes ······················································ 4(1) Quarterly Consolidated Balance Sheets ·················································································· 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income ··············· 6(3) Quarterly Consolidated Statements of Cash Flows ··································································· 8(4) Notes to Quarterly Consolidated Financial Statements ····························································· 10
Going Concern Assumption ·································································································· 10
Notes on Significant Changes in Shareholders’ Equity ····························································· 10
Change in an Accounting policy ···························································································· 10
Change in an accounting estimate· ························································································ 10
Additional Information ········································································································ 10
Segments of the Company and Related Information ·································································1211.

Qualitative Information on results for this quarter of FY ended February 2024

(1) Overview of Business Results
During Q2 of consolidated cumulative period (March 1, 2023 – August 31, 2023), in the apparel industry, while there
was a recovery in consumer spending as the impacts of the COVID-19 subsided, the situation remained challenging
due to a combination of factors, including a change in consumer sentiment towards apparel products themselves dueto the COVID-19, soaring resource prices due to the Russia and Ukraine situation, and rapid exchange rate
fluctuations.
In such a business environment, in order to transform itself into a "non-apparel-only company" and a "fashionentertainment creation company" as set out the new medium-term management plan called the "TSI Innovation
Program 2025 (TIP25)" announced in April 2022,the Group continues to drive forward fundamental reforms to its
profit structure and corporate structure in response to changes in the social environment and customer lifestyles
associated with the development of Digital Transformation (DX). Specifically, we focus on investing in growth businessareas, primarily in EC expansion, and aim to reform its profit structure by shifting the phase from withdrawing
unprofitable stores to opening large stores and reopening stores in prime locations, and developing attractive stores.
Meanwhile, the Group are determined to focus more on reforms in the area of sustainability, which is of growinginterest to customers, and will continue its efforts to reassure customers of the new value of the products offered by
the Group through a review of materials and manufacturing processes.
The Group has been working to secure over-the-counter sales and strengthen sales through e-commerce, as well as
to curb excess inventory and cost of goods sold by strictly monitoring product purchases and reducing them toappropriate levels.
Consequently, the net sales stood at 73,278 million yen (up 1.7% year on year), the operating income was 532 million
yen (down 9.6% year on year), and the ordinary income reached 1,608 million yen (down 15.0% year on year).
Furthermore, the quarterly profit attributable to owners of the Group’s parent was 1,472 million yen (down 34.6% year
on year).
Net sales by reportable segment were as follows.

Apparel-Related Businesses
With regard to each of the subsidiaries that comprise our apparel-related business, we focus on strengthening
profitability by investing in growth business areas, reforming real stores, and shifting to EC sales channels based on
the TIP25.
Overall, existing businesses have performed well. We strove to improve our profitability by rolling out products thatleverage the features of each brand which are tailored to customers’ diverse lifestyles, especially the street brand“STUSSY” (which continued to perform well), London collection brand “MARGARET HOWELL,” military fashion
focused “AVIREX,” golf brands “new balance golf” and “PING,” and outdoor fashion focused “and wander.”Consequently, the net sales in apparel-related businesses increased by 1.7% compared with the previous fiscal year
to 70,672 million yen.

Other Businesses
Companies within TSI Holdings’ other businesses include S-Groove Co., Ltd., which in addition to fulfilling a sales
function for Group operating companies engages in paid employment placement and worker dispatching activities,
Toska-Bano’k Co., Ltd., active in the manufacture and sale of synthetic resin related products, Plax Co., Ltd., which
engages in store design and supervision as well as restaurant operations, Laline JAPAN Co., Ltd., which procures andsells a variety of products including cosmetics, perfumes, and soaps, and Urth Caffe JAPAN Co., Ltd., which operates
in Japan a popular organic café in California, the U.S. Net sales were 2,978 million yen (up 2.5% compared with theprevious fiscal year ).

2

(2) Overview of Financial Position(Million yen)
At the end of FY ended
February 2023
(As of February 28, 2023)

At the end of 2Q FY ended
February 2024
(As of August 31, 2023)

Increase/decrease

Total assets

135,427

132,679(2,747)

Liabilities

36,54933,399(3,150)Net assets

98,87899,280402

72.7%¥1,168.69

74.5%¥1,204.99

1.8%¥36.30Shareholders’ equity ratio
Net assets per share

Assets decreased by ¥2,747 million, mainly due to a decrease in cash and deposits (down ¥7,544 million from theend of the previous fiscal year), despite increases in inventories (up ¥3,113 million from the end of the previous fiscal
year) and “other” in investments and other assets (up ¥1,587 million from the end of the previous fiscal year).
Liabilities decreased by ¥3,150 million, mainly due to decreases in notes and accounts payable–trade (down ¥1,189
million from the end of the previous fiscal year) and long-term borrowings (including the current portion of long-termborrowings) (down ¥2,495 million from the end of the previous fiscal year), despite an increase in “other” in non-current
liabilities (up ¥1,083 million from the end of the previous fiscal year).
Net assets increased by ¥402 million, mainly due to increases in retained earnings (up ¥620 million from the end of
the previous fiscal year), valuation difference on available-for-sale securities (up ¥859 million from the end of theprevious fiscal year), and foreign currency translation adjustment (up ¥399 million from the end of the previous fiscal
year), despite an increase in treasury stock (up ¥1,506 million from the end of the previous fiscal year), which is adeduction item in net assets.
As a result, net asset per share increased by ¥36.30.

(3) Explanation of Consolidated Business Forecast and Other Forward-looking Statements
The actual business results for the consolidated six-month period that ended on August 31, 2023 differed from theforecast released on April 12, 2023 for the 1st half of the fiscal year ending on February 29, 2024. For details, pleaserefer to the “Notice of Difference between Forecast and Actual Results for the 1st Half” that was released today(October 13, 2023).

3

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets
Previous consolidated
fiscal year
(As of February 28, 2023)(Million yen)
Quarter consolidated
accounting period ofcurrent fiscal year
(As of August 31, 2023)

AssetsCurrent assets
Cash and deposits
Notes receivable-trade32,205
127

24,660102

Account receivable-trade
Merchandise and finished goods

10,60423,484

11,10326,360

636
559

838
594

Other
Allowance for doubtful accounts

4,261
(40)

3,964
(57)

Total current assets

71,83767,566

6,136

6,746

Goodwill
Other

1,922

1,862

7,024

6,510

Total intangible assets

8,946

8,373

27,8794,708

27,792
4,695

Allowance for doubtful accounts

16,023(105)

17,610(105)

Total investments and other assets

48,50649,993Work in process
Raw materials and supplies

Non-current assets
Property, plant and equipment
Intangible asset

Investments and other assets
Investment securities
Investment property
Other

63,58965,113

135,427

132,679

11,40717

10,217
-

4,737
626

4,203
342

1,301
124

1,028
112

Other

120
7,905

114
7,944

Total current liabilities

26,23923,963Long-term borrowings

5,010

3,047

Provision for retirement benefits for directors

37
1,188

35
1,214

Other

2,414
1,658

2,394
2,742

Total non-current liabilities

10,3099,435

36,54933,399Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for shareholder benefit program
Asset retirement obligations

Non-current liabilities

Retirement benefit liability
Asset retirement obligations

Total liabilities

4Previous consolidated
fiscal year
(As of February 28, 2023)(Million yen)
Quarter consolidated
accounting period ofcurrent fiscal year
(As of August 31, 2023)

Net assets
Shareholders’ equity
Share capital
Capital surplus

15,00025,93315,00025,933Retained earnings
Treasury stock

56,052(3,031)

56,672(4,537)

Total shareholders’ equity

93,95393,068

3,802

4,662

969
(245)

1,369
(199)

4,526

5,832

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

5

397

380

98,87899,280135,427

132,679

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly consolidated statements of income
Consolidated cumulative second quarter

Net sales(Million yen)
Consolidated cumulative
Consolidated cumulative
second quarter of
second quarter ofprevious fiscal year
current fiscal year
(March 1,2022 to August 31, (March 1,2023 to August 31,
2022)
2023)
72,08773,278

Cost of sales

31,35232,436Gross profit

40,73540,841

Selling, general and administrative expenses

40,14640,308588

532

Interest income
Dividend income

13
356

31
694

Real estate income
Foreign exchange income

178
519

174
187

Other

363

98

1,431

1,186

37
22

26
23

67

59

Operating income
Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses on real estate
Other

127

110

1,892

1,608

4

3

Other

778
91

508
-

Total extraordinary income

873

511

6

5

104
-

80
17

Other

134
3

-

Total extraordinary losses

248

103

2,517

2,016

672

518

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sale of investment securities

Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities

Income before income taxes
Income taxes―current
Income taxes―deferred
Total income taxes
Net income
Net loss attributable to non-controlling interest
Net income attributable to owners of parent

6

(360)

80

311

598

2,206

1,418

(43)

(54)

2,249

1,472

Quarterly Consolidated statements of comprehensive income
Consolidated cumulative second quarter

Net income
Other comprehensive income(Million yen)
Consolidated cumulative
Consolidated cumulative
second quarter of
second quarter ofprevious fiscal year
current fiscal year
(March 1,2022 to August 31, (March 1,2023 to August 31,
2022)
2023)
2,206
1,418

Valuation difference on available-for-sale securities

442

859

Foreign currency translation adjustment

913
43

422
46

(27)

14

1,371

1,342

Comprehensive income

3,578

2,760

Total comprehensive income attributable to:
Owners of parent

3,540

2,777

37

(16)

Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for using equity method
Total other comprehensive income

Non-controlling interests7(3) Quarterly Consolidated Statement of Cash Flows(Million yen)
Consolidated cumulative
Consolidated cumulative
Second quarter ofSecond quarter ofprevious fiscal year
current fiscal year
(March 1,2022 to August 31, (March 1,2023 to August 31,
2022)
2023)
Cash flows from operating activities
2,517

2,016

2,054
217

1,593
230

16
37

16
68

-

(1)

(321)

(273)

(310)
(455)

-

(6)

(11)

(369)
37

(725)
26

(4)
6

(3)
5

104
(778)

80
(490)

(652)
(2,717)(401)(2,885)339(1,226)(1,239)
(39)

1,209

(541)

Subtotal(298)(2,575)Interest and dividends received
Interest paid

369

725

(37)
(345)

(26)
(1,286)

1,200

17

888

(3,145)

Income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement
benefits for directors
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for sales returns
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in provision for shareholder
benefit program
Interest and dividend income
Interest expenses
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss (gain) on sales of investment securities
Decrease (increase) in accounts receivables–trade
Decrease (increase) in inventories
Increase (decrease) in accounts payables–trade
Increase (decrease) in accrued consumption taxes
Other

Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities

8

(Million yen)
Consolidated cumulative
Consolidated cumulative
Second quarter ofSecond quarter ofprevious fiscal year
current fiscal year
(March 1,2022 to August 31, (March 1,2023 to August 31,
2022)
2023)
Cash flows from investing activities
16

680

995
(1,097)(1,245)22(2,359)3(3,539)

4,455
(661)

5,382
(325)

(163)
282

(260)
717

(37)
290

(38)
(432)

1,743

940

(7)

(18)

(3,439)(1,131)(2,495)(1,536)

41
(457)

29
(851)

(569)

-

(6)

(91)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(5,570)(4,963)572

314(2,366)(6,854)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents due to newconsolidation
Cash and cash equivalents at end of period

38,50330,721

113-

36,25023,866

Net decrease (increase) in time deposits
Proceeds from sales of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee
deposits
Acquisition of long-term prepaid expenses
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from sales of treasury shares
Dividends paid
Payments for sales of shares of subsidiaries withoutchange in scope of consolidation
Other

9

(4) Notes to Quarterly Consolidated Financial Statements

Going Concern Assumption
Not applicable

Notes on Significant Changes in Shareholders’ Equity
Not applicable

Change in an Accounting policy
Guidance on the Application of Accounting Standards for Fair Value Calculation“Guidance on the Application of Accounting Standards for Fair Value Calculation” (ASBJ Guidance No. 31, June17, 2021. Hereafter referred to as the “Guidance on the Application of Accounting Standards for Fair Value
Calculation”). The new accounting policy stipulated in the Guidance on the Application of Accounting Standard for
Fair Value Calculation is to be applied from the beginning of the first quarter of the current fiscal year, in accordancewith the transitional treatment stipulated in paragraph 27-2 of the Guidance on the Application of AccountingStandard for Fair Value Calculation, and will be applied in the future as well. There is no impact on the quarterly
consolidated financial statements.

Change in an Accounting estimate
Valuation Criteria for Inventories
The Group has adopted a valuation criteria for inventories based on a certain devaluation rate determined inaccordance with the period since production or purchase during the forecasted periods of selling products and others.
The Group’s balance sheet amount is based on the devalued book value.
Under the medium-term management plan called the TSI Innovation Program 2025, the Group strives to build a
circular business model, which will minimize apparel waste to achieve a sustainable global environment through thepower of fashion entertainment.
Against this backdrop, the duration for selling a certain product, etc. has been extended. Now, we can understandthe true status of the extended duration more accurately with sufficient volume of accumulated sales data.
Under such circumstances, in order to more appropriately reflect the reality of decreased profitability associatedwith inventories in the financial position and business results, the Group decided to extend some of the forecasted
periods of selling products and others related to the write-down of book value of inventories in the second quarter ofthe current consolidated fiscal year.
As a result of this change, the cost of sales decreased by ¥105 million for the consolidated six-month period that
ended on February 29, 2024. Consequently, operating income, ordinary income, and income before income taxes all
increased by the same amount.

Additional Information
Trust-Type Employee Stock Ownership Plan (ESOP)TSI Holdings resolved at a Board of Directors’ meeting held on April 13, 2020 to reintroduce a trust-type employee
stock ownership plan (ESOP) as an incentive plan and part of its efforts to provide benefits for its employees.
i. Overview of the Plan
The Company has established a trust (the Shareholding Association Trust). The beneficiaries of the Shareholding
Association Trust are members of the TSI Employee Shareholding Association (the Shareholding Association) who
have met certain requirements.
The Shareholding Association Trust acquired in advance a number of TSI Holdings shares projected to be acquiredby the Shareholding Association over a five-year period from April 2020 utilizing funds procured through debt
finance. Thereafter, acquisition of the Company’s shares by the Shareholding Association will be undertaken by the
Shareholding Association Trust. Meanwhile, TSI Holdings will guarantee the debt finance undertaken by the10

Shareholding Association Trust.
ii. Shares of the Company Remaining in the Trust
The shares of the Company remaining in the Trust are posted as shares of treasury stock in the net assets section
at their carrying amount in the Trust. The carrying amount and number of shares of treasury stock as of the end of
the previous fiscal year under review were ¥187 million for 400,000 shares. And that as of the end of this fiscal year
under review were ¥162 million for 346,000 shares.
iii. Carrying Value of Debt Finance Posted Using the Gross Price Method
As of February 28, 2023: ¥255 million and as of August 31, 2023: ¥220 million,

Board Benefit Trust (BBT)In accordance with a proposal put forward at the Company’s 5th General Meeting of Shareholders held on May
25, 2016, TSI Holdings introduced a performance-linked stock compensation (Board Benefit Trust (BBT)) plan for
its directors and delegated executive officers as well as Group company directors (eligible officers).
i. Outline of the Transaction
Under the plan, the Company’s shares are acquired through a trust using money contributed by the Company asfunds. Eligible officers receive the Company’s shares equivalent to the points granted in accordance with the levelof performance achievement, etc., and money equivalent to the amount of the Company’s shares converted at market
value as of the date of retirement (the Company’s shares, etc.), pursuant to the officer stock delivery regulations.
Meanwhile, the timing of receipt of the benefits of the Company’s shares, etc. by eligible officers shall, in principle,
be upon their retirement from office.
ii. Shares of the Company Remaining in the Trust
The shares of the Company remaining in the Trust are posted as shares of treasury stock in the net assets section
at their carrying amount in the Trust. The carrying amount and number of shares of treasury stock were ¥279
million for 496,000 shares as of the end of the previous fiscal year and ¥274 million for 487,000 shares as of the endof this fiscal year under review.

Application of the accounting treatment and disclosure for the application of the group totalization system
The Company and some of its domestic consolidated subsidiaries have shifted from a consolidated tax payment
system to a group totalization system from the first quarter of the current financial year. In line with this, theaccounting treatment and disclosure of corporate and local income taxes and tax effect accounting are based on the"Treatment of accounting treatment and disclosure when applying the group totalization system" (Practical
Response Report No. 42, August 12, 2021; hereinafter referred to as "Practical Response Report No. 42"). In
accordance with Paragraph 32 (1) of the Practical Response Report No. 42, no impact is deemed to arise from changes
in accounting policies as a result of the application of the Practical Response Report No. 42.

11

Segments of the Company and Related Information
1. Consolidated cumulative second quarter of previous fiscal year (March 1,2022 to August 31, 2022)(1) Net sales, income or losses, assets and other items by reportable segments
Reportablesegment
Other
Total
Note 1
Apparel-related
businesses

Adjustments
Note 2

Consolidated
financialstatements
amount(Note 3)

Net sales
Sales to third parties

69,4492,590

72,04047

72,087

60

314

375

(375)

―

69,5102,905

72,415(327)

72,087

1,417

65

1,483

(894)

588

Inter-segment sales or transfers
Total
Segment income
Notes:

1. Other, which doesn’t belong to respective reportable segments, includes synthetic resin-related, store design andmanagement and so on.
2. Segment income adjustment of ¥(894) million is transaction offsets among consolidated companies.
3. Segment income is adjusted to operating income listed in the consolidated financial statements.
(2) Goodwill or impairment loss in non-current assets by reportable segments

Important impairment loss in non-current assets
In the segment “apparel-related businesses,” book value of the stores which have decided to close, whose operating
income is continuously in red, and whose brands are to be closed, is supposed to be reduced to the recoverable amount.
And the decrease is posted as impairment loss in the extraordinary losses section
As a side note, the recorded amount of impairment loss in non-current assets was ¥104 million for the consolidated
six-month period that ended on August 31, 2023.

A significant change in the amount of goodwill
None

A significant gain from negative goodwill
None

12

1. Consolidated cumulative second quarter of current fiscal year (March 1,2023 to August 31, 2023)(1)Net sales, income or losses, assets and other items by reportable segments
Reportablesegment
Other
Total
Note
1
Apparel-related
businesses

Adjustments
Note 2

Consolidated
financialstatements
amount(Note 3)

Net sales
Sales to third parties

70,6102,617

73,22750

73,278

61

361

423

(423)

―

70,672

2,97873,650(372)

73,278

1,062

165

1,228

(695)

532

Inter-segment sales or transfers
Total
Segment income
Notes:

1. Other, which doesn’t belong to respective reportable segments, includes synthetic resin-related, store design andmanagement and so on.
2. Segment income adjustment of ¥(695) million is transaction offsets among consolidated companies.
3. Segment income is adjusted to operating income listed in the consolidated financial statements.
(3) Goodwill or impairment loss in non-current assets by reportable segments

Important impairment loss in non-current assets
None

A significant change in the amount of goodwill
None

A significant gain from negative goodwill
None13